Written by Nathan Hewitt
Three new solutions for retail’s major recruitment challenges
An average time-to-hire of 40 days. Hiring costs in excess of $2,000 per candidate. An average turnover rate of 60-70%.
The challenges of hourly recruitment in the retail industry have been well-documented.
Despite this, many of the largest companies persist with old-school recruitment processes.
Given the break-neck pace and scale of the industry, it’s hard to diagnose and fix the problem.
Understandably, many HR leaders have been quick to layer on technology solutions that seem to make things easier; in actuality, these tech solutions have added complexity, making efficiency gains difficult and actionable insights hard to find.
The big and unmanageable HR tech stack
Where recruitment is concerned, a HR tech stack tends to look like this: an unwieldy ATS, often coupled with a conversational AI or scheduling tool.
This stack is implemented across a decentralized system – hundreds of stores across the country – resulting in a situation where hiring managers are forced to use systems they don’t understand and don’t like.
The bottom line is this: Retail companies are overstacked, overworked, and need to adopt different solutions to old problems.
1. Solve high turnover through soft skill and personality trait matching
One of the biggest challenges with recruitment at major retail companies is high turnover rates. Retail staff members move fast and often, and have a high likelihood of migrating to competing businesses.
This is partially a nature-of-the-beast problem, but if we better understand what makes people tick, we can better match them to the roles at which they’re likely to succeed, and therefore keep them longer.
For example, we know that the best retail cashiers are high in extraversion. They’re energized by being around people, have good interpersonal skills, and have a lower likelihood of experiencing negative emotion while on the job.
It makes sense, then, to prioritize extraversion when matching candidates to the role of cashier. That’s a personality trait – with attendant soft skills – that will predict success for that role.
When people are matched to the job for which they are best suited, they’ll experience higher levels of purpose and satisfaction. It’s obvious why – the daily activities will invigorate rather than drain them. People who have purpose stay longer.
Therefore, if you accurately match soft skills to roles, you’ll reduce churn. Our AI Smart Chat Interviewer is really good at this: Across the board, our skill-matching power reduces non-regrettable churn by a minimum of 25%.
Side note: HEXACO is your secret weapon
If you’re keen to get started measuring soft skills, download our HEXACO job interview rubric. It features more than 20 interview questions designed by our personality psychologists to assess the skills of candidates that come your way. It will even help you figure out what soft skills are best for you based on the needs and values of your organization.
2. Reduce competition from other employees through smart employer branding
Chances are, when your employees or candidates leave, they’re probably staying within the industry – and that means they’re likely going to your competitors. It’s 2023, and the stock-standard advice would be to offer higher wages and perks.
That’s not always feasible, and besides, there’s no guarantee that doing so will markedly reduce the threat of poaching and abandonment. Money is important, but it doesn’t trump purpose and belonging.
The key to better employer branding is a system for active listening. Find out what your people, be they employees or candidates, think. Ask them often. It’s important to do this at the onboarding stage, but it should continue through to the point of highest churn – the six-month mark.
Our joint report with Aptitude Research uncovered some interesting data on the importance of two-way feedback between candidates and employers.
Gathering and acting on mutual feedback:
- Boosts quality of hire from 36 to 58%, on average
- Boosts candidate experience from 34 to 44%, on average
- Improves first-year retention from 35 to 50%, on average
An NPS (Net Performer Score) framework is a good place to start. How likely are you to recommend our company to a friend or colleague?
The NPS tracking question is easily configurable and embeddable into automated emails, meaning it can be set up through your ATS with little additional work.
When you begin to analyze the data, keep things simple: Dump the data into a spreadsheet, and look at your average numbers. If your score is below 0, you’ve got work to do – if it’s 0 to +30, you’re doing well. 30+ and over, well done!
(If you’re reading this, it’s probably not likely that you’ll get a 30+ score on the first go-round. That’s okay – the goal is to find out how much work you’ve got to do.)
The benefit of benchmarking NPS is that it gives your business a single, easy-to-understand proxy for employee engagement. Once you’ve got the number, you can start to make small changes and see how that affects the overall number.
3. Increase your talent pool by limiting candidate abandonment
We hear it all the time: Sourcing is a big problem. When we ask customers about their current processes, however, a common problem emerges: We don’t really know how many people we’re losing from our recruitment funnel, and why.
This presents a great opportunity: Often, improving an application process means removing things, rather than adding them.
Conventional wisdom tells us that the longer your application and interview process goes on, the higher your dropout rate will be. But that’s a generalized issue – it tells you nothing about how to fix the problem, beyond simply making it shorter. You need specific, localized data to diagnose and fix your leakage spots.
Data from a 2022 Aptitude Research report on key interviewing trends found that candidates tend to drop out at the following stages, in the following proportions:
- 22% of candidates drop out at the application stage
- 24% at the screening stage
- 25% at the interview stage
- 18% at the assessment stage
- 9% at the offer stage
Let’s say that you had 100 visitors to your careers (or job ad) page, and 20 of them completed the first-step application form on that page. You’ve lost 80% of your possible pool right there. Not great, but at least you know – now you can examine that page to uncover possible issues preventing conversion.
Is the page too long? Does it have too much text? Is the ‘apply’ button clearly shown? Is the form too long, requiring too much information to fill out? Are your perks/EVP attributes clearly displayed?
We’ve got an in-depth guide for measuring and improving your abandonment rate here.
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PeopleScout + Sapia = Faster, fairer hiring
Supercharge your hiring by integrating PeopleScout and Sapia. With the click of a button you can be hiring faster, fairer and better than ever before.
Make a difference
As the first gate to employment, the hiring team has a huge influence on candidate experience, diversity and inclusion and overall business success. The way you hire can make someone’s day. It can set your business up to overtake the competition. It can be one step towards designing a fairer world for everyone.
Hiring is more complex than ever
There’s a lot expected of recruiters these days. Attracting candidates from diverse backgrounds and delivering exceptional candidate care whilst selecting from thousands of candidates isn’t easy.
Recruiters are expected to:
- Find the right people, ensuring a diversity of candidates
- Fill roles quickly and efficiently
- Interrupt bias in hiring and promotion
- Ensure every person hired amplifies the organisation’s values
- Create a candidate experience that is engaging and rewarding
Technology is more powerful than ever
The good news is that technology has advanced to support recruiters. Integrating Sapia artificial intelligence technology with the powerful People ATS facilitates a fast, fair, efficient recruitment process that candidates love.
Are you ready to:
- Reduce your screening time by up to 90%
- Increase your candidate satisfaction to near 100%
- Achieve interview completion rates over 90%
- And reduce screening bias for good
Your advantage: Sapia + PeopleScout
Gone are the days of screening CVs, followed by phone screens to find the best talent. The number of people applying for each job has grown 5-10 times in size recently. Reading each CV is simply no longer an option. In any case, the attributes that are markers of a high performer often aren’t in CVs and the risk of increasing bias is high.
We’ve created a quick, easy and fair hiring process that candidates love.
- Create a vacancy in PeopleScout, and a Sapia interview link will be created.
- Include the link in your advertising. Every candidate will have an opportunity to complete a FirstInterview via chat.
- See results as soon as candidates complete their interview. Each candidate’s scores, rank, personality assessment, role-based traits and communication skills are available as soon as they complete the interview. Every candidate will receive automated, personalised feedback.
By sending out one simple interview link, you nail speed, quality and candidate experience in one hit.
Experience the Sapia Chat Interview for yourself
Integrate PeopleScout and get ahead
Get ahead of your competitors with Sapia’s award-winning chat Ai available for all PeopleScout users. Automate interview, screening, ranking and more, with a minimum of effort. Save time, reduce bias and deliver an outstanding candidate experience.
The interview that all candidates love
As unemployment rates rise, it’s more important than ever to show empathy for candidates and add value when we can. Using Sapia, every single candidate gets a FirstInterview through an engaging text experience on their mobile device, whenever it suits them. Every candidate receives personalised MyInsights feedback, with helpful coaching tips which candidates love.
Together, Sapia and PeopleScout deliver an approach that is:
- Relevant—move beyond the CV to the attributes that matter most to you: grit, curiosity, accountability, critical thinking, agility and communication skills
- Respectful—give every single person an interview and never ghost a candidate again
- Dignified—show you value people’s time by providing every single applicant personal feedback
- Fair—avoid video in the first round interviews and take an approach that’s 100% blind to gender, age, ethnicity and other irrelevant attributes
- Familiar—text chat interviewing is not only highly efficient, it’s also familiar to people of all ages
There are thousands of comments just like this:
“I have never had an interview like this in my life and it was really good to be able to speak without fear of judgment and have the freedom to do so.
The feedback is also great. This is a great way to interview people as it helps an individual to be themselves.
The response back is written with a good sense of understanding and compassion.
I don’t know if it is a human or a robot answering me, but if it is a robot then technology is quite amazing.”
Take it for a 2-minute test drive here >
Recruiters love using artificial intelligence in hiring
Recruiters love the TalentInsights Sapia surface in PeopleScout as soon as each candidate finishes their interview.
Together, Sapia and PeopleScout deliver an approach that is:
- Fast—Ai-powered scores and rankings make shortlisting candidates quicker
- Insightful—Deep dive into the unique personality and other traits of each candidate
- Fair—Candidates are scored and ranked on their responses. The system is blind to other attributes and regularly checked for bias.
- Streamlined—Our stand-alone LiveInterview mobile app makes arranging assessment centres easy. Automated record-keeping reduces paperwork and ensures everyone is fairly assessed.
- Time-saving—Automating the first interview screening process and second-round scheduling delivers 90% time savings against a standard recruiting process.
Don’t believe us, read the reviews!
See Recruiter Reviews here >
HR Directors and CHROs love reliable bias tracking
Well-intentioned organisations have been trying to shift the needle on the bias that impacts diversity and inclusion for many years, without significant results.
Together, Sapia and PeopleScout deliver an approach that is:
- Measurable—DiscoverInsights, our operations dashboard that provides clear reporting on recruitment, including pipeline shortlisting, candidate experience and bias tracking.
- Competitive—The Sapia and PeopleScout experience is loved by candidates, ensuring you’ll attract the best candidates, and hire faster than competitors.
- Scalable—Whether you’re hiring one hundred people, or one thousand, you can hire the best person for the job, on time, every time.
- Best-in-class—Sapia easily integrates with PeopleScout to provide you with a best-in-class AI-enabled HRTech stack.
Getting started is easy
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How can we make hiring more inclusive for people with disabilities?
The Americans with Disabilities Act (ADA) passed in 1990. This year, Australia’s Disability Discrimination Act turned 30. Even after all that time, bias and discrimination against candidates and employees with disabilities continues to be an important topic.
The unemployment rate for those with a disability (10.1%) in 2021 was about twice as high as the rate for those without a disability (5.1%) (U.S. Bureau of Labor Statistics, 2022). Coupled with increased laws and regulations regarding the protection of disabled job applicants and employees (e.g., U.S. EEOC, 2022), it is no surprise that academics, employers, and selection vendors are keen to understand where potential disability bias exists so it can be reduced or, ideally, eliminated.
Traditional face-to-face interviews are a large entry barrier for people with disabilities
Traditional face-to-face or video interviews in particular create potential barriers for individuals with disabilities, due to the well-documented stigma and prejudice against those with disabilities (Scior, 2011; Thompson et al., 2011). One study found that fake accountant job applicants that had disclosed a disability were 26% less likely to receive employment interest from the employer than those with no disability. Worse, experienced candidates with disabilities were 34% less likely to receive interest, despite presenting equally high levels of qualifications (Ameri et al., 2015). In addition to the bias held by hiring managers or recruiters, another concern is that certain selection methods create a very poor candidate experience for individuals with disabilities, causing them stress or anxiety and therefore stopping them from putting their best foot forward. For individuals with Autism Spectrum Disorder (ASD) in particular, in-person or video interviews can be very stressful, with less than 10% believing they are given the opportunity to demonstrate their skills and abilities in this process (Cooper & Kennady, 2021).
Stuttering is another form of disability where traditional in-person and video interviews where the candidate has to speak may lead to stress and anxiety (Manning and Beck, 2013). One study found that people who stutter find their stuttering to be a “major handicap” in their working lives and over 70% thought that they had a decreased opportunity to be hired and promoted (Klein & Hood, 2004). Other disabilities, such as dyslexia and other learning and language disabilities may cause candidates to struggle with timed online selection assessments, so it is important to identify and remove these barriers (Hyland & Rutigliano, 2013).
How do we better accommodate people with disabilities or neurodiversity in the way we interview and hire?
Cooper and Mujtaba (2022) recommend alternative approaches that allow candidates with ASD to showcase their skills without having to verbally communicate them or properly interpret nonverbal cues.
The use of an online, untimed, chat-based interview – that is, our Ai Smart Interviewer – can not only help reduce discrimination against those with disabilities but also create a more positive candidate experience for them.
This format is particularly helpful for individuals with disabilities where traditional in-person interviews, video interviews, or timed assessments may cause stress or discomfort, therefore not allowing the candidate to express themselves freely and adequately demonstrate their skills.
The power of a Smart Interviewer, supported by research
Our Sapia Labs data science team has submitted a paper on reducing bias for people with disabilities to SIOP for 2023.
In the study, the data comes directly from our Smart Interviewer, which, as we said above, is an online untimed chat-based interview platform.
Candidates can give feedback after the interview process, and some candidates include self-report disability conditions in their feedback. While a number of different disabilities were mentioned, we had sufficient sample sizes to examine candidates with autism, dyslexia, and stutter. We compared their machine learning-generated final interview scores and yes/maybe/no hiring recommendations to a randomly sampled, demographically similar group of candidates that did not disclose a disability.
Effect sizes, 4/5ths ratios, and Z-tests revealed no adverse impact against candidates with autism, stutter or dyslexia. Additionally, feedback from these groups tended to indicate the experience was positive and allowed them the opportunity to do their best.
- “It was an unusual experience but as an autistic person, I appreciated being able to interview via text rather than phone. It gave me the chance to really consider my responses in my own time.”
- “I must admit this is much more relieving than a face-to-face interview as I fear that I would stutter and accidentally say something stupid.”
- “Being dyslexic, this interview gives me a fantastic opportunity to think and re-read my responses before delivery.”
True diversity and inclusion starts with the way you hire. Our Ai Smart Interviewer allows people with disabilities and neurodiversity – real people, with real ambitions – to represent themselves fairly.
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Hiring automation: It’s Time To Use Your Words
This Recruiter Says How You Write and What You Write Can Tell an Employer a Great Deal About Your Fit.
Barbara Hyman believes the most important skill for people looking for a job in the post-COVID world will be the ability to write.
“People who think clearly, write clearly,’’ says the chief executive of the artificial intelligence-powered recruiting firm Sapia, which judges its candidates on the most basic of skills.
The firm, which has big-name backers including Myer family member Rupert Myer, former Aconex founder turned venture capitalist Leigh Jasper, fund manager Dion Hershan and former JB Were partner Sam Brougham, gives every job candidate a first interview by asking them five text-based behavioural questions on their phone that take around 20 minutes to answer.
Then the company’s predictive models assign a “suitability” score to each candidate using over 80 features extracted from their responses and the system specifically precludes the use of names, gender and age to determine the recommended shortlist, removing unconscious bias from the recruitment process.
The company’s technology has already been used by 400,000 candidates looking for roles in retail, healthcare, customer service, hospitality, contact centres and graduate and trainee roles across 34 countries.
Its clients include Qantas, Bunnings, the Iceland Group grocery chain in the UK and Spanish telecoms giant Telefonica.
But Hyman says her biggest target client in the post-COVID world is government.
She believes the economy can only be sustainably reactivated through large-scale job security and that requires redeploying existing skillsets to meet in-demand industries.
“This requires a sophisticated and scaleable solution to find jobs for those whose industries have been decimated by the pandemic and have no jobs to return to. Our solution can immediately activate these job seekers into the new economy, steering them to the jobs they will be good at, she says.
She claims if the government activated this sort of technology for a range of growth industries the economic and social impact would be unprecedented.
“In a healthy economy, the cost benefit in Australia alone is $1bn net benefit (cost) for every 100,000 workers that get back to work one month earlier through reduced welfare payments and increased consumer spending. That is significantly higher when accounting for government subsidies as a result of COVID,” she says.
“A big part of getting back to work is the confidence and the mindset. We are exploring different avenues to allow people to use our chat bot to find their true role in the new economy. This is the vision we are trying to sell to government – you have your own personalised career coach that helps you find the ideal role.”
Hyman said one of the company’s big-name backers Rupert Myer, the chair of the Australia Council for the Arts and an emeritus trustee of The National Gallery of Victoria, had given her “amazing introductions” into the government and university sectors.
“When I came into the business in February 2018 it was running out of money. I had to get a bunch of the existing investors to support me,’’ says Hyman, a former chief human resources officer at REA Group and a human resources and marketing director at Boston Consulting.
Her data science leader at Sapia is Sri Lankan-born Buddhi Jayatilleke, who has a diverse background in machine learning, software engineering and academic research.
The firm has raised $4m in the past 2 years, including bringing in Australian global recruitment and talent management firm Hudson as a strategic investor last year.
“That gave us credibility because the number two recruitment firm in the market believes in what we are doing,’’ Hyman says.
“Whether you like it or not, there is enormous amount we can learn about you in 200 words. Just the very fact we don’t use any secret or behavioural data, you have to build trust from the beginning with your candidate. The completion rates are 95 per cent, the engagement rates are 99 per cent. But the key point is when we give you back your feedback. It is effectively a public service we are performing with this feedback.”
One of the firm’s initial backers was Rampersand, the venture capital firm which has a focus on early growth stage tech businesses.
Rampersand co-founder Paul Naphtali says the firm invested in Sapia for its ability to put data at the centre of a company’s people strategy.
“It’s a massive challenge for a start-up to aggregate the data and build the algorithms that can identify an individual’s suitability to a role quickly and accurately. It was a bold and ambitious plan from the beginning, and Sapia is now well on its way to becoming that data-centric engine,’’ he says.
“The company started with working to turbocharge the recruitment process by quickly identifying the right talent for the right roles.
“It’s taken time to build the tech and the data sets, but it’s paying off as a number of Australia’s leading companies now have Sapia as a default part of the process.”
He says the firm is now entering a new phase “where it also powers internal people management as well as for job seekers, which is obviously very relevant in the current environment”.
Recently in London Sapia was awarded the TIARA Talent Tech Star which honours the businesses globally in the talent acquisition industry.
Source: DAMON KITNEY, The Australian, October 30, 2020
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